Convertible Notes Payable

9 Months Ended

Sep. 30, 2021

Convertible Notes Payable [Abstract]

CONVERTIBLE NOTES PAYABLE

NOTE 4 – CONVERTIBLE NOTES PAYABLE

On March 16, 2020, the Company executed a Line of Credit (“LOC”) with Granite Peak Resources, LLC (“GPR”), a related party, evidenced by a convertible promissory note. On July 12, 2021, the LOC’s availability was increased from $2,500,000 to $5,000,000; its maturity extended from March 16, 2023 to March 16, 2025; GPR’s right to increase the LOC by another $1,000,000 and extend two additional years was increased to $5,000,000 and extended for an additional five years; and GPR agreed to forebear exercising its foreclosure rights under its defaulted Senior Secured Note and accrued interest of $3,647,532 at June 30, 2021 until December 31, 2021. In exchange for the foregoing accommodations the Company revised the price at which the LOC can be converted into common stock from $2.00 to $1.65 per share. Disclosure of the common share equivalent of the LOC’s principal and accrued interest outstanding has been revised accordingly.

The LOC is for funding operating expenses critical to the Company’s redirection and all requests for funds may be approved or disapproved in GPR’s sole discretion. The LOC bears interest at 10% per annum, and is secured by the real and personal property, and subsidiaries’ stock GPR’s Senior Secured Note has under lien. During the nine months ended September 30, 2021, and year ended December 31, 2020, GPR advanced $580,828 and $206,022, respectively, pursuant to the LOC in direct payments on the Company’s behalf, to fund certain operating expenses and reduce certain accounts payable. At September 30, 2021 and December 31, 2020 the balance due GPR under the LOC is $800,425 and $219,597 principal and $58,138 and $16,073 accrued interest, respectively. Advances by GPR to pay directly certain operating expenses and reduce certain accounts payable on the Company’s behalf have been included in the convertible promissory issued by the Company in connection with the LOC and classified accordingly in the accompanying consolidated condensed financial statements. (See Note 7)

Including the foregoing advances under the LOC, there was $900,425 of principal and $122,297 of accrued interest outstanding on convertible debentures at September 30, 2021. With exception of the $800,425 of principal advanced under the LOI to date, a pre-existing $100,000 convertible note and its accrued interest of $64,159 which were in default   was assigned to GPR in September 2021.